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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies. While appealing due to its market-based simplicity, using this as the primary valuation driver for startups is fraught with peril. Beta measures the volatility of the company relative to the market.

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The Role of Industry Assignment in Business Valuation: A Comprehensive Guide

Equilest

By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth. Industry-Specific Risks and Opportunities Every industry comes with specific risks and opportunities.

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How to Categorise a Startup (for Valuation)

Equidam

This calibration directly impacts expected returns, required ROI, survival rates, and appropriate liquidity discounts, significantly refining risk assessment. Country: Argentina Operating from Argentina influences extrinsic risk factors due to regional economic conditions, market size, regulatory environment, and currency stability.

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Startup Valuation: The Ultimate Guide

Equidam

4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] 23] Risk-Free Rate: Tied to government bond yields (e.g.,